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Financial Markets

Cryptocurrency CFDs

Cryptocurrency CFDs

What are cryptocurrency CFDs?

A contract for differences (CFD) belongs to a group of investment vehicles known as derivatives. CFDs allow traders and investors an opportunity to profit from price movement without actually owning the underlying assets. Cryptocurrency CFDs are used to speculate about the price of cryptocurrencies. This means that a Bitcoin CFD tracks the price of Bitcoin, allowing you to trade it without having to own or manage any Bitcoin itself.

What to Trade in Cryptocurrency CFDs?

Cryptocurrency CFDs allow you to speculate on the value of a cryptocurrency pair, such as the following:

  • BTC/USD
  • BCH/USD
  • ETH/USD
  • XRP/USD
  • LTC/USD
  • BTC/ETH

If you think the value of a cryptocurrency will rise, you can “go long”; if you expect it to decrease, you can “go short”. This offers the potential for you to make a profit in both rising and falling markets.

What is the Advantage of trading Cryptocurrency CFDs?

There has been a surge of interest in cryptocurrencies over the past few years. That demand has led to many CFD trading platforms and brokers now offering cryptocurrency trading pairs.

Trading with Cryptocurrency CFDs allows traders to invest a small deposit and gain huge profit by using leverage options. To open a CFD trade, you only need to deposit a small percentage of the trade’s total value. This could be 20%, 5% or even less of the total transaction and is known as the margin requirement. So, if you are opening a trade worth $10,000, for example, you may only need to pay a deposit of $100. However, you can still receive 100% of gains if the price moves the way you predict.

Why trade Cryptocurrency CFDs with Finveo?

  • Customer Services: All customers have access to 24/5 localized 1-on-1 customer support, plus tools and educational materials.
  • Tight Spreads: Finveo offers highly competitive spreads on index.
  • Effective Risk Management: Employ risk management tools, such as stop loss and limit orders to safeguard your potential when trading indices.
  • Low Commissions: Tight, competitive spreads – meaning you pay less to open a position.